MARKETING FOR

GROUP 1
ELAISSA BERNARDO
JOELLA MARIE ABESAMIS
HOSPITALITY AND TOURISM
What is Tourism Marketing?

Tourism marketing is the collective name

given to the various marketing strategies
used by businesses within the tourism
industry. This includes, for example,
hotels and other forms of
accommodation, along with airlines, car
rental services, restaurants, entertainment
venues, travel agents and tour operators.
Hospitality Marketing

Marketing is a process of getting

a company product or services
out to consumer.
- the art and science of finding ,
retaining , and growing profitable
customer.
Main components of marketing
concept
1. customer needs/wants /demands - the
focus of the marketing concept is to
satisfy customer’s need, wants and
demands.

2. profitability companies aim to generate

profits by satisfying their customer’s
demand better than their competitors
3. integrate marketing – marketing is a
concerned effort from all personnel
within the company.
Tourism and hospitality are service
industry

• Therefore a different approach is

required for its implementation
• The special features of tourism and
hospitality marketing are;
1. Uniqueness
Unique characteristics of travel and tourism
services
a. Seasonality and demand fluctuations
b. Interdependence of tourism products
c. High fixed costs of service operations
2. intangibility
a) – services cannot be seen , tasted , feel,
heard or smell before they are purchased.
b) in tourism and hospitality industry many of
the product sold are only experiences.
3. inseparability
• In tourism hospitality service , both
the service provider and the customer
must be present for the transaction to
occur.
4. perishability
• services cannot be stored
• if unused it is wasted
In hotel unreserved 50 rooms out of 100
cannot be stored.
5. high unstable demand
• the demand is influenced by factors such as
economic , political and natural disaster.
• seasonal – changes affect the demand of
product
Ex. Tourist destination have short tourism business
demand
6. variability
• services are highly variable
• quality of service depends where, where and by
whom are they provided.
• simultaneous production and consumption of
services make it difficult to maintain their
consistency during peak seasons.
7. motivations
- refer to the subjective and subjective
reasons, expectations and desire w/c influence
tourist choice for a certain destinations.
8. dominant role of intermediates
it refer to
- tour operator
- travel agent
- hotel broker
- it play important role as they eventually
enjoy superior marketing strength.
9. brand marketing
-defined as unique elements that identify a product
and set it apart from others.
 Advantages ;
 Memorability
 Loyalty
 Familiarity
 Premium image – premium price
 Greater company equity
 Lower marketing expense
 Less risk for consumers
10. Emotional marketing
- Use of words sign and symbol aimed at
solicitating some sets of emotions , such as joy,
excitement, relation from target client.
11. affinity marketing
- Marketing programs sponsored by organization
that solicit “involvement” by individual who share a
common interest or activity.
- seeks to get consumer to buy and use a particular
product based upon shared activity or interest.
Ex. Credit card company
12. no ownership
- Tourist attraction has no ownership , as well as no
ownership passes from seller to buyer in tourism
industry.
- the buyer only acquire the right to certain benefits
for specific time period of what the seller offer.
 
Marketing for Hospitality and
Tourism
Service profit chain

A model that shows the relationships

between employee satisfaction , customer
satisfaction ,customer retention ,value
creation and profitability
FIVE LINKS OF SERVICE PROFIT CHAIN

1. internal service quality superior

employee selection and training , a quality
work environment, and a strong support
for those dealing with customer
2. satisfied and productive service
employee – more satisfied , loyal and hard
working employee
3. greater service value; more effective
and efficient customer value creation and
service – delivery
4. satisfied and loyal customer satisfied
customer who remain loyal , repeat
purchase , and refer other customer
5. healthy service profit and growth-
superior service firm performance .
Types of marketing
1. internal marketing- means that the service firm
must effectively train and motivate its customer-
contact employees and all the supporting service
people to work as a team to provide customer
satisfaction.
2. external marketing -is the action of promoting
and selling services or products, which includes
market research and advertising to clients and
potential clients. 
3. inter active marketing - marketing by a service
firm that recognizes perceived service quality depend
heavily on the quality of the buyer- seller interactions.
Management Strategies for Service
Business

A. Managing Differentiation
The solution to price competition is
to develop a differentiated offering.
The offer can include innovative
features that set one company’s offer
apart from that of its competitors.
B. Managing Service Quality
With hospitality products , quality is
measured by how well customer expectation
are met.
C. Managing Service Productivity
With their cost rising rapidly service firms are
under a great pressure to increase service
productivity. They can do in several ways, train
current employees better or hire new ones who
will work harder or more skilfully. Or they can
increase the quantity of their service by giving
up some quality.
 
D. Resolving customer complaints
Customer complaint is a critical component of
customer retention

E. managing Employee as part of the product

In the hospitality industry , employees are a
critical part of the product and marketing mix.
The human resource and marketing department
must work closely together. The task of internal
marketing to employee’s involve the effective
training and motivation of customer contact –
employees and supporting service personnel.
F. Managing perceived risk
The high risk that people perceive when purchasing
hospitality products increases loyalty to common
companies that have provided them with consistent
product in the past.

G. Managing Capacity and Demand

Because services are perishable , managing capacity
and demand is a key function of hospitality marketing.
1. services must adjust their operating system to
enable the business to operate at maximum capacity.
2. they must remember that their goal is to create
satisfied customers
 
THE ROLE OF MARKETING IN STRATEGIC PLANNING
A. Nature of High - Performance Business

a. Stakeholder – includes the customers, employees,

suppliers and communities where their business is
located and other people organizations that have an
interest in the success of the business.
A business must at least strive to satisfy the
minimum expectations of each stakeholder group.
b. Processes companies build cross- functional teams
that manage core business processes in order to be
superior competitors.
c. Resources – companies decide to outsource
less critical resources. They identify their core
competencies and use them as a basis for their
strategic planning.
d. Organizations companies align their
organization’s structure, policies, and culture to
the changing requirements of business strategy.
B. Corporate Strategic Planning
a. defining the corporate mission
b. setting company objectives and goals
c. Designing the business portfolio

- market definitions of a business are superior

to product definition. A business must be
viewed as a customer – satisfying process, not
a product – producing process.
Companies should define their business in
terms of customer needs, not product.
C. Partnership to Build Customer Relationship
a. Partnership with other company departments –
the major functional department in each unit-
marketing ,finance, accounting, purchasing,
operations, information systems, human resource
and others – must work together to accomplish
strategic objectives.
b. Partnering with others in the marketing systems.

Competition no longer takes place only between

individual competitors. Rather , it takes place between
the entire value delivery networks created by these
competitors.
D. Marketing Strategy and Marketing Mix
A. Customer Value- Driven Marketing Strategy.
A company must first understand their needs
and wants. Thus , sounds marketing requires a
customer analysis.

1. market segmentation – market consists of

many types of customers, product and needs.
Customer can be grouped and served in
various ways based on geographic,
demographics psychographic and behavioural
factors.
2. market targeting- involves evaluating each
segments attractiveness and selecting one or
more segments to enter. A company should
targets segments in which it can profitably
generate the greatest customer values and
sustain it over time.
3. market differentiation and positioning – after
a company has decided which market segment
to enter ,it must decide how it will be
differentiate its market offering for each targeted
segment and what position it wants to occupy in
those segments.
B. Developing an Integrated Marketing Mix
The marketing mix is the set of controllable , tactical
marketing tools that the firm blends to produce the
response it wants in the target market.
The marketing mix consist of everything the firm can
do ti influence the demand of its product.
1. Product – the goods and services combination
the company offers to the target market.
2. Price - the amount of money customers must
pay to obtain the product.
3. Place – company activities that make the
product available to target customers
4. Promotion – activities that communicate the
merits of the products and persuade target customers
to buy it.
IV. THE MARKETING ENVIRONMENT
1. Microenvironment – micro environment
consist of actors and forces close to the
company that can affect its ability to serve its
customers. The actors in the microenvironment
include the company, suppliers , market
intermediaries, customers and publics.
a. The company - marketing managers work
closely with top management and the various
company departments.
b. Existing competitors – the are part of the
microenvironment and must be monitored
closely.
 c. Suppliers – firms and individuals that provide the
resources needed by the company to produce the
goods and services.
d. Marketing Intermediaries – firms that help the
company to promote, sell and distribute its goods to
the final buyers.
e. Disintermediation –the elimination of
intermediaries
f. Marketing service agencies - marketing research
firms advertising agencies , media
firms and marketing consulting firms help
companies to target and promote their
products to the right market.
 g. Financial Intermediaries – includes banks , credit
companies , insurance companies and other firms that
help hospitality companies to finance their
transactions or insure risk associated with the buying
and selling of goods and services..
h. Customers manager must understand the
different types of customers : consumers, business
markets, government markets , resellers and
international markets.
i. Public – a public is any group that has an actual or
potential interest in or impact on an organization ‘s
ability to achieve its objectives.
2. Macroenvironment – consist of the larger
societal forces that affect the whole
microenvironment ; demographic, economic,
natural technological, political, competitor and
cultural forces.
a. competitive environment – consider its
size and industry position in relation to its
competitors.
b. demographic environment – study of
human population in terms of size, density,
location, age, sex. Race ,occupation and
other statistics.
c. economic environment- consist of the
factor that affect consumer purchasing
power and spending power.
d. Natural environment-consist of natural
resources required by marketers or
affected by marketing activity.
e. technological environment- the most
dramatic force shaping our destiny today
is technology.
f. political environment – made up of laws
,government agencies, and pressure
groups that influence and limit various
organization and individual in society.
g. cultural environment- includes
institutions and other forces that affect
society’s basic value’s,
perception ,preferences and behavior.
V. CONSUMER MARKETS AND COSUMER
BUYING BEHAVIOR

1. Model of consumer Behavior.

The company that really understand how
consumer will respond to different
product features , prices and advertising
appeals has a great advantage over its
competitors.
2. Personal Characteristic Affecting Consumer
Behaviour
A. Cultural Factors
Culture the most basic determinant of a person’s want
and behaviour. It compromise the basic values,
perception , wants and behaviour that a person learn
continuously in a society.
Subculture each culture contain smaller subcultures,
group of people with shared value system based on
common experiences and situations
Social classes relatively permanent and ordered
division in a society whose member share similar
values, interest and behaviour.
B. Social Factors
Groups – group that have direct influence
and to which a person belongs are called
membership groups.
Word – of –mouth influence and buzz
marketing – the personal words and
recommendations of trusted ,associates ,
and other consumers tend to be more
credible than those coming from
commercial sources .
Online social networks – these network are
online communities where people socialize or
exchange information and opinions.
Family – family members have a strong
influence on buyer behaviour. The family
remains the most important consumer buying
organization in American society.
Role and status – a role consist of the activities
that a person is expected to perform according
to a person around him or her. People often
choose product that shows their status in
society.
C. Personal factors
a. age and life – cycle stage – the types of goods and services
people buy change during their life time.
Ex. Families with young children dine out in fast food
restaurants.
b. occupation – a person’s occupation affects the goods and
services bought.
c. Economic Situations a situation generally affect s product
choice and the decision to purchase a particular product.
d. lifestyle – lifestyle profile a person’s whole pattern of
acting and interacting in the world.
e. personality and self – concept - each person’s personality
influences his or her buying behaviour . By personality we
mean distinguishing psychological characteristics that disclose.
D. Psychological factors
1. motivation a need becomes a motive
when it is aroused to a sufficient level of
intensity.
2. perception is the process by which a
person selects organizes and interprets
information to create a meaningful picture of
the world.
3. learning describes changes in a persons
behaviour arising from experience.
4. beliefs and attitude – belief is a
descriptive thought that a person holds about
something.
3. Buyer Decision Process
a. need recognition – buying process starts when the
buyer recognizes a problem
b. information search- an aroused consumer may or
may not search for more information .
c. evaluation alternative – there is no simple and single
evaluation process used by all consumer or even by one
consumer in all buying situations.
d. purchase decision – in evaluation stage, the consumer
ranks brands in the choice sets a forms purchase
intentions.
e. post purchase behavior- the marketer’s job does not
end when customer buy a product. Following a purchase ,
the consumer will be satisfied or dissatisfied and will
engage in postpurchase action of significant interest to the
marketer.
THANKYOU FOR LISTENING…